This is what I wrote for my fuel escalation clause for my customers this year. Constructive feedback appreciated. And yeah, I know some people don't think it's a great idea. I am asking what you think of my wording on what I wrote. We've already beaten the pro/con arguement to death.
FUEL ESCALATION CLAUSE:
All prices included on this pricing sheet have been figured using current gas and oil prices, as of February 2004. However, in the current unstable economic climate, fuel and oil prices have shown to fluctuate widely in the summer months, and there are always predictions for higher prices every year. Gas and oil are two major expenses in the Green Industry. To create affordable, accurate and competitive rates each year, it is extremely difficult to anticipate the gas and oil price fluctuations. At the same time, higher rates cut directly into revenue and come right out of my profits. TJs is a full time business for me; I do this as my career. To stay in business and produce a profit margin I can live from, I must take into consideration this potential for gas and oil price spikes. Unlike retail pricing, my rates are set at the beginning of the season, and I lock them in for you for the season. If major price increases occur during the summer, I have no way of offsetting those price spikes during the season to maintain a reasonable living wage.
Therefore, starting this season, I will include a fuel escalation clause with my pricing. All lawn care rates quoted on this pricing sheet are applicable for gas prices up to an average of $2.25 per gallon, 87 octane. From $2.25 to $3.00, an additional $1 per visit will be added to your rate. For each additional $1 per gallon beyond $3.00, an additional $1 per visit will be added. The escalation will be based on average gas prices on the day of your service. If prices come down, the additional charges will not be charged for that visit. If prices stay up, any necessary rate adjustments will occur next season.
This clause is designed to offset any gas and oil price spikes that might occur during the summer season. This increase is a minimum I would need to charge to stay profitable, and I hope to never invoke this Escalation Clause. A sample escalation table is available on the website, www.tjslawncare.com.